Top 4 Reasons Most Personal Injury Claims Settle

If you have recently been injured in an accident that was not your fault and have decided to pursue a claim against the at-fault party, you can feel secure knowing that the vast majority of personal injury cases settle. Read on for the top four reasons and the best way to get started on your personal injury claim.

Insurance company agreements

When insurance companies are involved in an accident claim, and they usually are, settlements are almost always offered. The reason this is a given has to do with why most personal injury cases settle. Insurance companies often offer settlements because they have the financial means to pay compensation; in fact, they generally expect to pay a certain amount of compensation for liability claims. In addition, they are “risk averse,” meaning they will do whatever it takes to avoid losing control of costs should they have to go to trial on a claim.

Why Most Cases Settle

Here are the top 4 reasons virtually all personal injury cases settle:

1. Risk aversion

As mentioned, most insurance companies choose to offer settlement in an attempt to control financial risk. They would rather make an offer and control the amount of that offer, rather than risk the case going to trial, where a jury decides how much the plaintiff should be offered for his pain and suffering.

2. Reputation protection

Another common reason insurance companies choose to offer a settlement is for the sake of their reputation. This is especially important today with all the relevant social media platforms available to the public. Larger companies are especially interested in protecting their reputations as they have a very public profile and any damage to their reputations can jeopardize company profits. Discreetly offering an out-of-court settlement gives the company the opportunity to negotiate terms that work for both parties, including possibly a confidentiality clause.

3. Avoid a lengthy trial

Plaintiffs often choose to settle in order to avoid a lengthy trial. Victims cannot receive financial help until a settlement is reached; therefore, if a trial continues for months or years, victims may suffer financially. It is common for plaintiffs to need the money right away to pay for their losses and damages, including hospital bills, medical expenses, lost wages, physical therapy, and more.

4. Win Guarantee

Another common reason plaintiffs choose to accept a settlement offer is for the simple purpose of winning and to acknowledge what they went through. Accepting an offer is a guaranteed method of obtaining compensation.

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